Pioneer Cement Limited (PIOC) has entered into an agreement with Pragmatic Engineering Solutions FZE and China’s Sungrow Power Supply Co., Ltd. for the supply and installation of a 15MW/30MWh Battery Energy Storage System (BESS) and an additional 10MW solar power facility at its Chenki plant in District Khushab, Punjab, according to a report issued by AKD Research.
The project, targeted for completion by March 2027, aims to increase the renewable component of PIOC’s power mix while improving energy efficiency and reducing electricity costs. The battery storage system will store surplus solar generation during daylight hours and discharge it during peak demand periods, improving power utilisation and supporting grid stability.
According to AKD Research, solar energy currently contributes about 23 per cent of PIOC’s expected power mix, while grid electricity accounts for 51 per cent and waste heat recovery (WHR) contributes 26 per cent. Following the expansion, the company’s solar generation capacity is projected to increase from 31MW to 41MW.
The research house estimates that approximately 12 million kWh, or 59 per cent of the BESS capacity, will be routed through battery storage, with the remaining output consumed directly. Based on its assessment, the project is expected to involve capital expenditure of around Rs2.4 billion.
AKD Research further projected that the integrated solar and battery storage installation could generate annual after-tax savings of approximately Rs257 million, equivalent to around Re1 per share, through lower energy costs and improved operational efficiency. The brokerage noted that any reduction in project capital expenditure below current estimates could further enhance anticipated savings.
Separately, the research report highlighted that both Maple Leaf Cement Factory (MLCF) and PIOC have approved a Scheme of Arrangement for the merger of PIOC into MLCF through a share swap ratio of 2.65x, effective July 1, 2026.
Maintaining a “Buy” stance on MLCF with a December 2026 target price of Rs157 per share, AKD Research said its positive outlook is supported by expected demand recovery driven by a revival in construction activity and improved margins resulting from cost-efficiency initiatives. The report added that PIOC is currently trading at a discount of about 1.8 per cent to the swap-implied value, potentially offering investors a more attractive entry point ahead of the merger.
Source: AKD Research
